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Political Spend Analysis and How It Will Affect Advertisers

We took a deep dive into how this election cycles will affect ecommerce and SaaS advertisers.

Remember that you can go into Varos’ app to get accurate/real-time benchmarks and insights similar to these but for your brand vs. your category. These insights were actually taken directly from the Varos by pulling the date filter back to 2020 and 2019.

The full 24 page report for August can be found at our newsletter, the DTC Index .

There are some unique elements to this year’s election spending. Namely, no primaries.

Open Secrets estimates that $14.4B was spent on political races in 2020, more than double the spending of 2016. More than $1B of this was spent on the Democratic party presidential primary. Generally every election cycle sees significant outlays during this portion of the process, so it’s not surprising that according to Ad Impact, spending YTD is 1/2 what it was in 2020 ($1.4B in 2020 vs $716M in 2024).

Trump has abandoned Meta.

One stark contrast is in the allocation of ad dollars between the two parties. Given our unique focus on understanding the impact to our industry, this difference could be quite consequential to consider. Trump and pro-Trump groups have seemingly abandoned Meta (~6% of total budget) and have focused their spend heavily into television.

Conversion optimized political ads?

One additional interesting data point is that both candidates use the majority of their Meta spend to drive direct responding fundraising efforts. Meta continues to be the king of getting consumers to pull out their wallets.

Effects of 2020 Election on Ecommerce

Looking at Meta, 2020 was a strong year for Meta from a CPM perspective (compared to the previous year). Then coming into the election CPMs started to rise significantly, going from -20% YoY in June to +13% YoY in November. About 45% of advertisers experienced CPM increases of over 10% YoY in October and November of 2020.

Cost per Purchase followed a similar trend, getting more expensive as the elections neared. But 2020 was such a strong year that it was able to stay on a net-improvement from the year before, despite CPMs increasing.

Google also was having a strong year in terms of performance in 2020, and also saw cost increases nearing the election. Google went from being 10% lower YoY on CPM to +3% in November. In fact, nearly 50% of Google advertisers saw increases of CPM YoY of greater than 10% in November.

Google’s cost per purchase saw similar trends.

Overall, the elections had a real impact on costs in the months leading up to it. That said, Meta and Google have since diversified further, increasing the commonly used ad format types available (i.e., Reels, Advantage+, Stories, Shorts, etc.) and have been able to scale ad revenue without having deterioration on an advertiser’s performance.

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Chase Dimond | Email Marketing Nerd 📧
@ecomchasedimond

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I would definitely recommend checking out Varos. With Varos you can easily see how your peers are performing, for free. You get insights into not only TikTok Ads benchmarks, but also similar data for Facebook Ads, Google Ads, and more. #VarosAmbassador

jason wong
@eggrolI

Varos allows thousands merchants to upload anonymize marketing data across meta and google and aggregating it to show what the average is across different categories and ad spend

Cody Plofker
@codyplof

With varos.com, I can see exactly how our performance across channels stacks up against our competitors in our space.

Barry Hott ☄️
@binghott

Compare your ad performance to benchmarks of companies just like yours, anonymously.
I would've killed for this tool years ago and now it's here and oh it's free. Amazing.

Ron Shah
@obviceo

I've been seeing some content about @Varos_com so we decided to check it out.

One underrated feature of theirs is the Shopify Benchmarking, which is FREE btw.

Literally impossible to access this data anywhere else. Check out what we're seeing at @my_obvi 👇

William Harris
@wmharris101

I'm loving what @Varos_com is doing with providing much more relevant benchmarks for #ecommerce... especially since it shows that we are absolutely DOMINATING @Elumynt on #facebookads!

This is in the Baby and Children vertical.#fbads #ppcchat #retail #dtc

Chase Dimond | Email Marketing Nerd 📧
@ecomchasedimond

Bottom line: I’m recommending Varos to you all because it’s FREE (for now) and it’s already added a ton of value for myself and my clients.Check it out 👇

Social Savannah
@social_savannah

I would definitely recommend checking out Varos. With Varos you can easily see how your peers are performing, for free. You get insights into not only TikTok Ads benchmarks, but also similar data for Facebook Ads, Google Ads, and more. #VarosAmbassador

jason wong
@eggrolI

Varos allows thousands merchants to upload anonymize marketing data across meta and google and aggregating it to show what the average is across different categories and ad spend

Cody Plofker
@codyplof

With varos.com, I can see exactly how our performance across channels stacks up against our competitors in our space.

Barry Hott ☄️
@binghott

Compare your ad performance to benchmarks of companies just like yours, anonymously.
I would've killed for this tool years ago and now it's here and oh it's free. Amazing.

Ron Shah
@obviceo

I've been seeing some content about @Varos_com so we decided to check it out.

One underrated feature of theirs is the Shopify Benchmarking, which is FREE btw.

Literally impossible to access this data anywhere else. Check out what we're seeing at @my_obvi 👇

William Harris
@wmharris101

I'm loving what @Varos_com is doing with providing much more relevant benchmarks for #ecommerce... especially since it shows that we are absolutely DOMINATING @Elumynt on #facebookads!

This is in the Baby and Children vertical.#fbads #ppcchat #retail #dtc